the acute liquidity problem faced by Apparel and Made ups exporters,
particularly those in MSME, Mr Sharad Kumar Saraf, President, FIEO said that
the RoSCTL scheme was not implemented in entire 2019 and MEIS also stopped from
1/8/2019 for apparel and made-ups sectors. This is a fatal blow to the apparels
and made-ups industry, which is one of the largest employment generation
industry particularly supporting the women workers. Huge funds of exporters are
now blocked under this scheme for no fault of theirs.
No funds disbursed since the announcement of RoSCTL
scheme, nearly Rs 6000 cr
FIEO said that no funds have been disbursed since the announcement of RoSCTL
scheme from 7/3/2019 and MEIS from 1/8/2019. This amount itself is nearly Rs
6000 crores. Most of the apparel exporters are from MSME sector and some of
them are already in the process of closure and default.
Very unfortunate, commitments are being ignored
of these products were surprised to see the gazette notification from MoT dated
14/1/2020 announcing one time additional ad-hoc incentive of 1% to offset
difference between RoSL & MEIS and RoSCTL from 7/3/2019 to 31/12/2019. This
is completely contradictory to what was already announced by the Government and
factored by the industry to maintain their competitiveness in view of fierce
competition. Many of them have paid statutory taxes also on RoSTL and MEIS
benefits said President, FIEO.
Demanding the refund of MEIS, unfair and legally
We are now
informed that apparel exporters will not get 2% MEIS even though the announced
earlier. It is very unfortunate that the commitments are being ignored. To make
the matter worst, Mr Saraf said, DGFT is now demanding the refund of MEIS paid
between 7/3/2019 and 31/7/2019. This is not only unfair but also legally untenable
because the policy once announced cannot be changed retrospectively.
Apparel industry subjected to tremendous
FIEO added that the apparel industry has been subjected to tremendous hardship.
In all fairness the government must honour the commitment made to the
exporters. We are already fast losing our business to other countries like
Vietnam, Cambodia, Myanmar, Bangladesh etc. The industry would have grown
atleast by 15% due to China – US trade war and now due to deadly virus in China
observed FIEO Chief. He requested Textile Minister to intervene to address the
plight of exporters.